Correlation Between Swiss Helvetia and Neuberger Berman

Can any of the company-specific risk be diversified away by investing in both Swiss Helvetia and Neuberger Berman at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Swiss Helvetia and Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Swiss Helvetia Closed and Neuberger Berman IMF, you can compare the effects of market volatilities on Swiss Helvetia and Neuberger Berman and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Swiss Helvetia with a short position of Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Helvetia and Neuberger Berman.

Diversification Opportunities for Swiss Helvetia and Neuberger Berman

0.84

Correlation Coefficient

Swiss Helvetia  Neuberger Berman

Very poor diversification

The 3 months correlation between Swiss and Neuberger is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Helvetia Closed and Neuberger Berman IMF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman IMF and Swiss Helvetia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Swiss Helvetia Closed are associated (or correlated) with Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman IMF has no effect on the direction of Swiss Helvetia i.e., Swiss Helvetia and Neuberger Berman go up and down completely randomly.

Pair Corralation between Swiss Helvetia and Neuberger Berman

Considering the 90-day investment horizon Swiss Helvetia is expected to generate 4.22 times less return on investment than Neuberger Berman. In addition to that, Swiss Helvetia is 1.3 times more volatile than Neuberger Berman IMF. It trades about 0.01 of its total potential returns per unit of risk. Neuberger Berman IMF is currently generating about 0.07 per unit of volatility. If you would invest  1,067  in Neuberger Berman IMF on September 13, 2024 and sell it today you would earn a total of  7.00  from holding Neuberger Berman IMF or generate 0.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Swiss Helvetia Closed  vs.  Neuberger Berman IMF

Swiss Helvetia Closed

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Swiss Helvetia Closed has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest uncertain performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Neuberger Berman IMF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman IMF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, Neuberger Berman is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Swiss Helvetia and Neuberger Berman

The main advantage of trading using opposite Swiss Helvetia and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Helvetia position performs unexpectedly, Neuberger Berman can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.

The idea behind Swiss Helvetia Closed and Neuberger Berman IMF pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.